In 2021, helping the streaming giant $Netflix (NFLX.US)$ The annually explosive growth performance blockbuster Korean drama "Squid Game" is about to return. The second season will meet the global audience after Christmas. The first season of "Squid Game" has historical significance for Korean dramas. Prior to this, the audience for Korean dramas was mainly concentrated in South Korea, Japan, and China, the three major countries in East Asia. However, the IP of "Squid Game" has proven that Korean dramas can also attract global audiences to watch like popular series such as "True Detective" and "Stranger Things", making it the "phenomenal hit series of the year" in 2021.

For the streaming giant netflix, the globally popular Korean drama IP 'Squid Game' is expected to drive netflix's strong performance into a new accelerated growth curve and will also test netflix's global marketing capabilities — that is, how to attract a larger global audience to subscribe to netflix to catch up or relive the content of the first season in preparation for the second season of 'Squid Game'.

The writer and director of the 'Squid Game' series, Hwang Dong-hyuk, recently accepted a media interview where he focused on the filming and production of the second season of this popular dystopian thriller Korean drama, which will premiere globally on the streaming platform netflix on December 26.

For creator Hwang Dong-hyuk of 'Squid Game' — who created and directed all nine episodes of this dark and shocking thriller series, leading the team to shoot one of the most popular series in netflix's history, the process was so stressful that he even lost seven or eight teeth while filming the first season of 'Squid Game'.

"Whenever I feel very tired or under a lot of pressure, I always have gum issues," he stated during an interview at a recording studio in the suburbs of Seoul. As for the condition of his teeth after filming the second season of 'Squid Game', Hwang Dong-hyuk said, "I haven't seen the dentist yet, but I guess I will most likely have to extract a few teeth."

After the first season officially ended, Hwang Dong-hyuk initially did not plan to shoot any sequels to the series. However, in the end, the streaming giant netflix's global team's extreme desire for this global hit series outweighed Hwang Dong-hyuk's concerns about any degree of dental damage. Hwang Dong-hyuk then began working on writing more sequels and even spin-offs.

On December 26, the day after the first broadcast of a professional football game on the netflix streaming platform, the second season of "Squid Game" will make a grand debut.

People really, really loved the first season - you saw the halloween outfits, people wanted to play similar games and share symbolic techniques, even leading to a range of peripheral derivatives," said netflix's Chief Content Officer Bela Bajaria in a recent interview. "People want more. When they love a show, they want to live it, experience it, and connect with it."

According to an internal calculation by netflix, since its premiere in September 2021, the first season of "Squid Game" has brought in at least approximately 0.9 billion dollars in profit for the streaming company. With the second season approaching, "Squid Game" has become one of the first korean dramas to generate multiple versions globally, covering various aspects from reality shows to video games to offline fan experiences.

Netflix has begun exploring derivative projects for the 'Squid Game' IP.

As new episodes of 'Squid Game' enter the preparation phase, Netflix is looking for other ways to expand the series, specifically exploring derivative business opportunities to generate revenue. The company has ordered a reality show adapted from the hit series, utilizing similar set designs. They have also started developing a multiplayer esports game based on the show.

In New York, Netflix has established a commercial escape room experience where fans can test their survival instincts. The streaming giant has had discussions with award-winning director David Fincher, who directed 'The Social Network' and 'Fight Club', to explore the possibility of producing an English adaptation.

Meanwhile, prior to the show's announcement of its return in December, Netflix is launching its largest promotional campaign in company history, placing advertisements in various areas from television to billboards to New York subway carriages for the second season of 'Squid Game'. In a shopping mall in the Southeast Asian country of the Philippines, Netflix has invested in creating a replica of the giant creepy doll that appeared in the first season. Several top global consumer brands, including Crocs and Johnnie Walker, have announced collaborations with the company to launch a range of 'Squid Game'-themed consumer products.

'Squid Game' Season 1 has been immensely popular globally, particularly yielding significant profits in the Asian market. According to Netflix's financial report, as of the end of September, Asia has surpassed Latin America to become the streaming service platform's third largest region, with approximately 52.6 million users. In recent years, South Korea's elite production teams have brought Netflix several globally popular Korean series, including 'Extraordinary Attorney Woo', 'All of Us Are Dead', and 'The Glory' series.

Additionally, the third season of 'Squid Game', which is also the final season, is expected to premiere in 2025. Hwang Dong-hyuk stated that he plans to take a long break afterward. "This will be the last series I write and direct," he said. "I don't think I will continue making more. I have reached my limit in terms of manpower, physical energy, and mental capacity."

'Squid Game' Season 2 is expected to drive Netflix's performance to continually exceed Wall Street expectations.

The third-quarter financial report released in October shows that Netflix added over 5 million new subscribers globally in the third quarter, and all major financial indicators exceeded Wall Street analysts' expectations, completely dispelling concerns about Netflix's subscriber numbers and performance growth entering a pessimistic phase.

Netflix's overall revenue in the third quarter increased by 15% year-on-year, reaching $9.83 billion, far exceeding Wall Street's expectations. The total number of subscribers at the end of the third quarter reached approximately 0.2827 billion. Almost all of Netflix's new subscribers in the third quarter came from Europe, the Middle East, Africa, and the Asia-Pacific region, but Netflix lost some customers in Latin America for the first time since early 2023. The company also stated that the number of new subscribers in the fourth quarter will exceed that of the third quarter. Netflix also predicts that by increasing new members and raising prices, sales next year will grow by 11% to 13%, reaching up to $44 billion.

According to Wall Street analysts bullish on raising Netflix's stock price, there are many ways Netflix can drive performance growth. The most important of these is to increase subscription prices, especially for the standard tier. Netflix has not raised prices for the standard subscription tier for over two years since introducing an ad-supported subscription model. With the continuous expansion of exclusive IP content libraries and an increasing user base, the expectation of price increases has investors bullish on Netflix's future revenue growth rate. The global audience engagement driven by popular IPs like "Squid Game" is expected to boost Netflix to raise subscription prices, achieving a balance of volume and price increase - a key driver for Netflix's long-term stock price growth.

Thomas Martin, a senior portfolio manager from Globalt Investments, stated that Netflix has proven its possession of the most loyal subscriber base in the world with numerous high-quality series like "Stranger Things." Subscribers are even willing to pay more for Netflix streaming services. "They have a significant room to raise prices for some subscription tiers, and may not lose customers," Martin said in an interview.

James Heaney, an analyst from jefferies financial, agreed, stating in a report: 'It must be acknowledged that netflix has become a 'value' choice, rather than a 'premium' subscription product as it was promoted in the past.' He particularly pointed out that subscription services from streaming competitors like Disney+, MAX, and Hulu are more expensive than netflix.

Editor/ping